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Distribution & Logistics Management V2
Assignment A (Answer any 3 questions)
1. Define Sales Management. What are the objectives of Sales management?
2. Explain the AIDAS Theory of Selling with the help of suitable examples.
3. What is the purpose of a Sales Organization? What are the steps you will take
for setting up of a Sales Organization? Explain with the help of suitable exa
mple.
4. What are the different sources of Sales Force Recruits? Illustrate with the h
elp of suitable examples.
5. Write short notes on:
Requirements of a Good Sales Compensation Plan
Quantitative Performance Standard
The emergence of global retailing
Planning Sales Training Programs
6. Explain Merchandise Planning and Control with the help of suitable examples.
7. What is wholesaling? Explain the different marketing functions performed by w
holesaler-distributors for manufacturers with the help of suitable examples.
8. Describe Physical Distribution Concept. What is Physical Distribution Cycle?
Give your answer with the help of suitable examples.
Case Study
HIRING THE RIGHT PERSON
Andrew Pharmaceutical Limited was engaged in formulations and some bulk drugs an
d had its factory and head office in Bangalore. The company has grown at thirty
per cent for the last three years and had a turnover of Rs. 26 c(ores last year.
The company employed 25 managerial and 150 non-managerial staff at their factor
y located at Bangalore. A, sales force oI 65 sales representatives was managed b
y 16 district sales managers, further reporting to five regional managers of reg
ional offices located in Delhi, Mumbai, Calcutta, Hyderabad and Indore.
However, a sudden rise in the number of sales force created problems regarding m
onitoring, coordination and administration of sales representatives, stockists a
nd dealers. A need was felt to revamp the system as the marketing director was u
nable to handle the overall marketing function. It was felt that the general man
agement cadre must be introduced to take charge so that the marketing director w
ill be free to concentrate on the strategic and development activities.
A high level meeting of directors discussed the issues and a decision was taken
to introduce general manager-marketing, and personnel department was asked to in
itiate the process and one Mr. Ravi Saxena was chosen for the new position. Mr.
Ravi Saxena had a decade of managerial experience in marketing and product devel
opment though his direct sales experience was negligible. However his planning a
nd execution skills were good and thus he was considered the best option for dev
eloping systems of market information, dealer and representative relations etc.
His profile, as briefed io him by Marketing Director, Chandra Mohan, included ma
nagement of sales and distribution and product development. Ravi made a six mont
hly plan and started the work and initiated an extensive communication with deal
ers, stockists and representatives for an effective market information system.
Within six month s time, however, things began to worsen at the marketing departme

nt. The interaction between Marketing Director and Mr. Ravi Saxena was minimum a
nd often ended in confrontations. Mr. Ravi Saxena had in the past six months tri
ed unsuccessfully to change some policies and systems related to payments and tr
aining dealers and sales representatives. Every time he proposed any such chang
e, it was rejected by Chandra on the plea that the systems had worked well in th
e past and hence no change is required. On the other hand Mr. Ravi Saxena felt t
hat he cannot be held responsible for results, when he has no power or authority
to improve the system. As a result of such a conflict Mr. Ravi Saxena began
to withdraw from making plans, meetings were conducted with customary interactio
n amongst two seniors and thus created an environment of confusion and uncertain
ty for managers and representatives. M r. Ravi Saxena gradually became more defe
nsive as the initial work done on market information system also suffered. In sp
ite of lack of support from Mr. Chandra, Mr. Ravi Saxena made significant improv
ements in the area of training for sales staff and product development. The prod
uct launches, promotion and literature improved considerably in quality and the
regular training improved the motivation of sales staff all around the five regi
ons. The regional managers and sales people, very subtly began to appreciate his
efforts and he enjoyed a good rapport with his people.
Mr. Chandra Mohan, however, was convinced that delays in decisions and inadequat
e control of sales force were becoming major issues and blamed Mr. Ravi Saxena f
or this, but he decided not to communicate with Mr. Chandra. As the time passed,
their relations worsened.
A regional manager created some troubles in the meantime. Mr. Ravi Saxena insist
ed that some action against the manager will put forth the company s stand but Cha
ndra didn t care. As a result everything went out of control, the coordination col
lapsed and fake medicines were recovered from a stockist in a police raid. Later
, an enquiry revealed that the regional manager in connivance with a rival compa
ny had done some activities which led to the fake medicines racket.
The company suffered a loss of name and its credibility in the market. The Manag
ing Director, Subhash Jain was anguished and ordered sacking of the regional man
ager and also demanded explanation on how things went this far.
Q1: What are the major issues in this case?
Q2: What reasons led to a conflict between Mr. Ravi Saxena and the Marketing Dir
ector Mr. Chandra Mohan? Did these conflicts arise due to unclear policies of th
e company?
Q3: How can the conflict in these two positions be minimized? Give your recommen
dations.
Assignment C

Question: 1
.. is not a part of order winners?
A: price
B: quality
C: delivery lead time

D: layout of the factory

Question: 2
Is not the element of quality concept?
A: Quality of service
B: quality of people
C: Quality of process
D: storage of materials
Question: 3
A company s channel decisions directly affect every

..

A: marketing decision
B: channel member
C: customer choices
D: employee in the channel
Question: 4
A proprietary items is manufactured / supplied by

..

A: a manufacturer with in the country

B: many manufactures
C: only one manufacturer
D: a high quality manufacturer
Question: 5
Benchmarking does not helps in
A: Identify the key criteria important to a particular market sector
B: Evaluate importance of each factor
C: Score the companies and sector as a whole to identify the performance gap
D: Defining the shape of the product
Question: 6
Benchmarking does not helps us
A: To know our competitors better
B: Become proactive
C: Improve performance

D: In identification of source of supply

Question: 7
Cash purchasing is usually done for:
A: High value items
B: Items of high consumption during the year.
C: Small value items
D: Proprietary items
Question: 8
Comparative statement is necessary for selecting a vendor
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 9
Customer is the destination point in a supply chain
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 10
Deming s 4 step cycle for improvement is:
A: Plan, Do, Check, Act
B: Schedule, Do, Act, Check
C: Do, Act, Check, Monitor
D: Plan, control, act, sustain
Question: 11
Distribution channel is not related to:
A: Retailers
B: Wholesalers
C: Manufacturers

D: Recruitment agency
Question: 12
Which is not a part of delivery scheme?
A: direct shipment
B: pool point shipping
C: cross docking
D: fabricating
Question: 13
Distribution channel is not required for
A: Plant and machinery
B: Spare parts
C: Consumables
D: Strategy announcement
Question: 14
Distributor is the destination point in a supply chain
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 15
EDI stands for:
A: Intensive distribution information
B: Electronic Distribution Interchange
C: Electronic Data Interchange
D: Electric Data Interchange
Question: 16
Integration of processes through the supply chain to share valuable information
does not include ..
A: demand signals
B: product development cost
C: inventory

D: potential collaboration
Question: 17
Five phases of benchmarking methodology may be scheduled as
A: Planning-analysis-integration-action-maturity
B: Planning-integration analysis-action-maturity
C: Planning-integration-action-analysis-maturity
D: Planning-analysis-action-integration-maturity
Question: 18
For economic transportation of materials use

A: rail services
B: truck service
C: air transport
D: inter-modal transportation method
Question: 19
What is the limitation of e-purchasing?
A: Lower transaction cost
B: leveraging of prices
C: quality check of the item not possible before delivery.
D: Facilitates supplier selection.
Question: 20
In pull strategy, the flow of demand is ..
A: Customer to channel members
B: Producer to customer
C: Retailer to customers
D: Wholesaler to customer
Question: 21
In push strategy, flow of promotion is not linked to
A: Personal selling to channel members
B: Advertising directing to customers
C: Direct marketing to consumers

D: Customer approaching the producer

Question: 22
Intermediaries transform the assortment of products made by producers into the a
ssortment of products wanted by
..
A: distributers
B: channel members
C: consumers
D: manufacturers
Question: 23
JIT
A: Just In Time
B: Joint Indian Tournment
C: Joint International Teretory
D: Japanese International Team
Question: 24
JIT brings reduction in

..

A: machinery
B: tools
C: inventory
D: inspection
Question: 25
Large quantity orders are placed for

A: Standard items
B: Non-standard items
C: Items where technology changes very fast
D: High value items
Question: 26
Logistics Management is not concerned with

A: Making drawings
B: transportation of materials from supplier to firm

C: storage of materials in warehouse

D: transforming the purchased materials into finished goods
Question: 27
Manufacturer is the destination point in a supply chain
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 28
MIS stands for

..

A: Management Information System

B: Master in Science
C: Master Information System
D: Materials in Stores
Question: 29
Mode of transportation of material depends upon

..

A: manpower employed
B: type of machine in the plant
C: production plans
D: types of material
Question: 30
Negotiations are important in purchasing a costly equipment
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 31
Negotiations between buyer and supplier does not include the
A: Technical specifications
B: brand name of various bought out items

C: Commercial terms and conditions

D: R&D projects undergoing
Question: 32
Negotiations between buyer and supplier does not include the
A: Price quoted by the vendor
B: discounts
C: delivery schedule
D: design secretes of the product
Question: 33
Ordering standard items takes less time
A: incorrect
B: incorrect to a great extent
C: incorrect to some extent
D: correct
Question: 34
Procurement time is low in the procurement of

A: Standard items
B: Non-standard items
C: Items of perishable nature
D: Items involving security risks
Question: 35
Products that sell for a very small period of time but generate huge sales volum
e within a short period are called:
A: Seasonal merchandise
B: Fashion merchandise
C: Fad merchandise
D: Staple merchandise
Question: 36
Purchase and operations management are closely linked.
A: Correct
B: Correct to a great extent

C: Correct to some extent

D: Incorrect
Question: 37
Purchase order is an agreement between purchaser and supplier for purchase of an
item
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 38
Purchase requisition is the first step for evaluation of suppliers
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 39
Purchasing department does not handle:
A: order writing
B: evaluating the performance of the suppliers.
C: Planning the quantity to purchase
D: stock taking
Question: 40
Purchasing is necessary for
A: inventory costing
B: production planning
C: to arrange the items in time
D: finalize the system arrangement
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